Forward Premiums Head Southward On Strong Rupee Outlook

Foward premiums in the foreign exchange market have started sliding. The six-month annualised forward premium today dropped sharply from 1.49 per cent to 1.32 per cent.

Since the announcement of the 50 basis points (one basis point is one hundredth of a percentage point) repo rate cut by the Reserve Bank of India (RBI) last week, the six-month and one-year annualised premiums have dropped by around 60 basis points